What if Videogames Had Died in 1983?

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I really like Kyle Orland. As a games journalist his quiet ambition for pushing games journalism beyond what it is is matched an underappreciated talent. Sometimes though even a good writer can miss the boat. That’s what I think happened in his interesting but underthought series of What if? articles at Crispy Gamer. In the articles, Orland attempts to look at key gaming moments and ask what might have happened had a different course been taken. Some of the questions he asks are interesting ones — What if Magnavox had decided to enforce Ralph Baer’s patent for a “television gaming apparatus” and gone on to become the almost monopolistic holder of the video game industry through its Odyssey 3 system? What if Nintendo had never released the Game Boy? That sort of thing. It’s an interesting concept, but Orland doesn’t really think some of the implications of the questions he’s asking through.

Take for example his segment on what if Atari had avoided the videogame crash in 1983 and gone on to face Nintendo. He posits that a forward thinking Nolan Bushnell pushes the development of the Atari 2700 — a more advanced console replacement for the 2600 that would be backward-compatible with 2600 cartridges. The console takes the market by storm and Atari survives to push upstart newcomer Nintendo into a corner of the market by 1990. What he misses in this posit is that the Atari 2700 actually existed and it was a disaster. It was called the Atari 5200 and while unlike the Orland’s fictional 2700 unit it wasn’t compatible with 2600 cartridges, that wasn’t really the deciding factor in its eventual death. The 5200 had the horsepower to compete against both the Intellivision (which it was designed to destroy) and the Colecovision (which had more graphic power but horrible controllers). Even without the backwards compatibility, the 5200 was certainly no disaster right out of the gate and after the unit was redesigned to accept 2600 cartridges could have been a success under the care of a competently run company.

The issue was really the glut of poor Atari 2600 software, the proximate cause of the great videogame crash of 1983-84 from which the Western industry almost didn’t recover. Orland’s 2700 system — even with backward compatibility — doesn’t address this problem. Indeed, it actually makes it worse because one of the first things a 2700 user would do would be to buy the bargain basement software that was currently flooding store shelves because it would be cheaper than the newer 2700 software. That would have killed the 2700 through word-of-mouth much faster than the 5200 died in the real world thanks to corporate stupidity and neglect. The institutional rot at Atari was already a foregone conclusion by 1983 and the innovation that eventually saved the Western side of the business – the Nintendo Seal of Quality – only came about because the fledgling Nintendo of America had learned the lessons of the crash. Without the crash, it’s extremely doubtful that Atari would have come up with the idea of licensing third-party software developers for the 2700 by virtue of the fact that they never thought of it for the 5200.

More importantly, Orland misses one of the real “what if?” scenarios that jumps out of Atari’s crash and burn – the fact that even if Atari had managed to survive the great crash it would not have gone on to face off against Nintendo – it would have survived by becoming Nintendo! In 1983, Atari under the “leadership” of Ray Kassar was on the verge of inking a deal with Nintendo to distribute Donkey Kong on home computers – a deal that was designed to be the precursor to Atari distributing Nintendo products outside of Japan. Given that Nintendo’s reason for wanting the deal was Atari’s impressive worldwide marketing apparatus, it’s entirely likely that the Famicom (which became the Nintendo Entertaiment System in the West in our world) would have been Atari-branded. That would have been the Atari 2700.

The problem with that scenario would have been – once again – a glut of poor software. Without a Nintendo Seal of Quality and a system of third-party licensing, there’s no doubt that crappy software for the 2700 would have flooded the market soon after the system was released. Regardless of the quality of the games that would be produced by Nintendo itself (we’re assuming that Atari would recognize Miyamoto’s genius and not try to slap a license on Super Mario Bros., by no means a slam-dunk), the 2700 would soon be buried in a bunch of crappy Chase-the-Chuckwagon clones. Atari would still have collapsed – albeit a year or two later and this time it would have taken Nintendo’s hope of Western expansion with it.

The result would have been a videogame drought that makes our crash in 1983-84 look like the glory days of the PS2. Nintendo in our world had a hard enough time getting into retail because of how badly retailers had been burned by the crash – they invented R.O.B. the robot specifically so they could call the system a “toy” rather than a videogame. After the crash of the Atari 2700 there isn’t a retailer in the Western hemisphere that would have touched a videogame with a 10-foot pole. Most Atari 2600 gamers would have either moved on to PC gaming as I did or simply forgotten about gaming altogether – except for dropping some quarters into the occasional old Pac-Man machine at a local 7-11 (the arcades also hit a big slump in this period from which they never really recovered). It wouldn’t have been the “end of videogames” but it’s entirely possible that gaming would never have become the relevant cultural force it eventually became. PC gaming could never have taken the place of console gaming because it wasn’t gaming that drove the adoption of the PC – it was spreadsheets.

In my mind, the true frontier of videogaming in such a world would probably have been the handheld system. In that case Nintendo, burned by the failure of the 2700 would have focused on expanding its Game & Watch line of products, introducing the first GameWatch Boy in 1986 (later the name would be shortened to just GameBoy) packed in with Tetris. About a year later the GameBoy would be rivaled by NEC’s Turbo Express and the two handheld systems would split the market between them, though NEC played second-fiddle to Nintendo until about 1995. Atari’s Game Gear – a joint venture between them and Sega – never managed better than a distant third in the marketplace.

In 1995 however, NEC would expand the capabilities of the TurboExpress by utilizing its heft as a consumer electronics company to link the TurboExpress into the burgeoning “multimedia” revolution by incorporating PCLink capabilities that allow users to download applications – including music and video files – into the newly renamed “TurboPod.” Eventually the TurboPod relegates the Gameboy into a niche as a mere gaming toy while NEC faces off against its real competition – Sony’s new line of Digital Walkmans that perform similar functions utilizing technology developed by Apple.

One response

Thanks for the kind words and the careful thoughts on my first What If? piece. You seemed to have missed or ignored one important point in my Atari 2700 hypothetical, though.

“The 2700 also includes a revolutionary lockout chip, which allows Atari to block games from companies that don’t pay a hefty licensing fee.”

I leave this unsaid in the piece, but the idea is that such a licensing scheme would have brought Atari an alternative stream of revenue while limiting the availability of crappy software, much as Nintendo’s “seal of quality” did. I also posit that the 2700’s two-button joystick, improved software and “killer app” in the form of Pitfall! would move the market away from the glut of poor 2600 software and towards the more controlled, higher quality 2700 market. The backwards compatibility would just be to ease in the transition, much like it did for the PlayStation 2 and Game Boy Advance. Basically, my idea is that the 2700 would have been the NES before the NES was.

I take your point that it’s unlikely that Atari would have made these visionary moves or come up with the idea of licensing on its own, but I was trying to create some sort of plausible scenario where they avoided the crash. Yes, the actual poor management of Atari would have stopped these things from happening… that’s why Atari actually did crash and burn. If it makes you feel better, add a line about a new management team being sent in before these moves happened.

The idea that Atari would absorb Nintendo is an interesting one, and probably more likely than the competition I suggest. But it’s much less interesting, so I decided to go with a late ’80s console war motif instead. I hope you’ll grant me some license there. =) If you want to see what happens when Nintendo gets absorbed by a dominant company, look no further than my Maganvox Odyssey 3 What If? article.

I like your own prolonged gaming drought hypothetical… I may have to steal that for the next “What If?” 😉